Economic impact of higher education on students, corporations and society

Using human capital as a backdrop, this article describes the economic impacts of higher education on students, corporations, and society with a focus on economic benefits rather than costs. Economic benefits for individuals accrue primarily in the form of earnings increases associated with higher education; considerable variations exist across institutions, majors, and individual characteristics. Corporations rely on higher education institutions for skilled and diverse workforce; they also benefit from research alliances with higher education institutions, which in turn facilitate the commercialization of academic research. Finally, higher education institutions contribute to economic development significantly at the societal level.